DuPont”s Deal for Danisco Shows Faith In Biofuels Market

DuPont Co.’s $5.8 bil deal to buy Danish enzyme maker Danisco A/S, announced earlier this month, is a vote of confidence in the biofuels industry but is unlikely to threaten the market share of Novozymes A/S, according to a report by Bloomberg. Novozymes A/S is a Denmark-based company, which currently holds the position as the world”s largest producer of enzymes used in biofuel production.

“DuPont’s decision to try to acquire Danisco is encouraging, in the sense that it shows major commitment to bioethanol,” said Lars Topholm, an analyst at Carnegie Investment Bank A/S in Copenhagen, in Bloomberg”s report. “The immediate implications are neutral, though, and being two times larger than Danisco in enzymes, Novozymes’ position as the world’s largest industrial enzyme producer is undisputed.”

Novozymes rose about 4.5 percent, to close at 837 kroner ($145.71) in Copenhagen following the announcement of the DuPont, Danisco deal. Shares of Danisco rose 0.08 percent to 657.50 kroner, after rising 24 percent immediately following the deal.

For the full Bloomberg report on this story, CLICK HERE.